77. What do you say to "I don’t care about anything but price?"
Don't back down when your customer complains about price.
Here is a lesson I learned over 25 years ago that I have never forgot.
Many years ago in a small New England town I owned a meat processing company. I was replacing the freezer compressor and wanted to have a new one installed. I called the top company in the state and a sales person gave me a price.
Then a rival sales person called and offered to do the job for half as much. I phoned the first sales person and told him about the incredible difference in price, and asked how come.
And he told me:
"Many people have gotten into this field recently, They rebuild compressors as a sideline over in the corner of the factory, or in someone's backyard garage. They're cheap all right-and 'cheap' is the word. These cheap ones don't run efficiently."
"Your saving in the purchase price would be used up in the first two or three years in the cost of additional electricity. But that's not the half of it. "These half-price compressors keep breaking down-and these companies don't service their products. They don't have the staff to do It. It's disastrous to have your freezer go out in summer weather."
"When you buy a compressor for your company, you've got to buy reliability. Our company is called on to service these cheap compressors . We do what we can with them after we take care of our regular customers. Many of the buyers of these cheap compressors, after a couple of years of headaches, switch over to one of our systems."
"Why not start with one of our compressors? You'll be ahead in actual costs in no time at all. You'll be ahead In having an efficient and virtually trouble-free system. You'll have a top cooling system by a top company that serves 80% of the people in this area-and we're known for our fast response to every call for help."
I bought the higher priced compressor from this "Cutting Edge" sales person who told me with irrefutable logic why I should buy from him, and I was never sorry. I needed one repair in 5 years and the repair man was there in half an hour.
You can do the same thing when a customer tells you that your price is too high, or a competitor called and said they could it for much less. The key is to know your product inside and out. Know the business environment the you work in and continuously be on the lookout for points of interest and points of difference that will keep you in tune with what's going on in your marketing area.